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NOTES TO
THE FINANCIAL STATEMENTS
2.15. De-recognition of financial liabilities
Financial liabilities are derecognised when the obligations of the Credit Union specified in the contract are discharged, cancelled or expire.
2.16. Pensions
Kildare Credit Union Limited participates in an industry-wide pension scheme for employees (The Irish League of Credit Unions Republic of Ireland Pension Scheme). This is a funded defined benefit scheme with assets managed by the Scheme’s trustees.
The scheme is a multi-employer Scheme and due to the nature of the Scheme, it is not possible for Kildare Credit Union Limited to separately identify its share of the Scheme’s underlying assets and liabilities. Consequently, it accounts for the Scheme as a defined contribution plan.
The Credit Union also funds pension benefits for certain other employees over the employees’ period of service by way of defined contributions paid to approved PRSA’s held with Zurich Life Assurance plc and New Ireland plc. Contributions to both pension schemes are based on a fixed percentage of employee’s annual salary and the charge in the Income and Expenditure Account reflects contributions paid and payable in respect of the year ended 30 September 2022.
2.17. Transfers of Engagements
Business combinations relating to acquiring control of trade and assets to form one or more businesses are accounted for using the purchase method.
The cost of a business combination is measured at the aggregate of the fair values, at the acquisition date, of assets given, liabilities incurred or assumed, and equity instruments issued plus any costs directly attributable to the business combination.
Where control is achieved in stages, the cost of the business combination is the aggregate of the fair values of the assets given, liabilities incurred or assumed, and equity instruments issued at the date of each transaction in the series.
Where the business combination requires an adjustment to the cost contingent on future events, the estimated amount of that adjustment is included in the cost of the combination at the acquisition date providing it is probable and can be measured reliably. Where it is not recognised at the acquisition date but subsequently becomes probable and can be measured reliably, the additional consideration is treated as an adjustment to the cost of the combination.
As at 30 September 2022, Kildare Credit Union Limited owe €1,884 to the Irish League of Credit Unions acting through the Savings Protection Scheme (SPS) administration committee, based on funds received by a transferor Credit Union prior to merger and this amount is included in creditors at the year end.
For the year ended 30 September 2022
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